ICRC moves to reduce water costs
The ACT’s water prices are set to fall by as much as 16.9 per cent if the key recommendations of the draft report released by the Independent Competition and Regulatory Commission.
The ICRC has released its draft report and proposed price direction for regulated water and sewerage services for the capital territory, suggesting that sewerage prices should fall by as much as 24 per cent.
The combined bill for the typical household could fall by 19% or $230 per year or $4.42 per week.
The draft proposal seeks to cover the period between 1 July 2013 to June 2018, the Commission is now seeking public comment on the recommendations and proposed price determination by 12 April.
The release of the draft comes two years after the Commission first undertook a root and branch assessment of past regulatory arrangements.
“The precise size of the price reductions delivered in the final report will be influenced by submissions we receive on this draft report”, Senior Commissioner Malcolm Gray, said.
“While these recommendations are entirely a matter for Government consideration, we believe that their adoption would support the delivery of more efficient water and sewerage services in the Territory.”
The Commission is recommending a substantial change to current regulatory framework. The principal changes are:
- water and sewerage service prices will be determined at two yearly intervals within a six year period
- ACTEW's business strategies and expenditure plans will be reassessed when prices are re-determined within this period
- ACTEW's cost of capital will reflect its actual borrowing costs and the return the community requires for its investment in ACTEW.